The specific course learning outcomes associated with this assignment are:
� Determine ways in which the vision, mission, and stakeholders of a firm impact that firm�s overall
success.
� Identify how the six segments of the general environment affect an industry and its firms.
� Identify the five forces of competition.
� Analyze the external environment for opportunities and threats that impact the firm.
� Analyze the internal environment of a company for strengths and weaknesses that impact the
firm�s competitiveness.
� Identify various levels and types of strategy in a firm.
� Assess the ethical implications related to strategic decisions.
� Predict ways in which corporate governance will affect strategic decisions.
� Assess the relationship between strategy and organizational structure.
� Use technology and information resources to research issues in business administration.
Write clearly and concisely about business administration using proper writing mechanic
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Introduction
Brunswick Corporation is a company that has been building boats for commercial and
military use for more than 50 years. This has been the case since their meager commonly
referred to as the legendary Boston Whaler brand. Brunswick company, is one of the largest
marine manufacturers,among other indoor recreational equipment.The company does not
only manufacture their products, but also market them around the world, but majorly operate
in the US. Brunswick headquarters is located in the Lake Forest, Illinois.
Brunswick company has a vision of being the best and the most profitable company
producing recreational and lifestyle brand. In fact, they are aiming at redefining the marine,
recreational and agreater experience for generations to come. This will help in elevating
people’s life fun, provide fitness solutions as well as help people live their lives well. This
implies that Brunswick has an outstanding brand that has a recognizable mark around the
world market.The company innovations move in a direction that ensures the customers get
the best experience. The mission statement is to become the market leader in the marine,
fitness, and recreational industries. The company has also made countless effort to gain
experience so that they can provide the best quality recreational commodities. In fact, no
industry is comparable to Brunswick that offers the world-class marine machinery.
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Furthermore, they have outstanding quality products that they have no rival companies.Also,
they have outstanding knowledge about their product.Brunswick has a unique mission does
not include their customers, employees, and their shareholders. However, their main aim is to
retain the best-talentedworkers and provide game-changing commodities. The company
advertisement id based on the slogan, Getting the product right.
Forces of competition
Over the years the company has not been innovative thus has continuously made
products that are not differentiable products. Brunswick also overstretches in four segments it
has not mastered any of their products. This fact has made them less competitive in the global
market in any of the segments they operate (Venkatraman, n.d.). The forces of completion to
this company are very high. There are different forces of competition that the corporation
faces.For instance, they face highly specialized competitors who have an advantage over
Brunswick. The specialized companies have an advantage in that they can occupy a certain
market niche and satisfy their customers well. However, the company has a vast knowledge
of the market rather that a specific expertise (Venkatraman, n.d.).An example of forces of
completion that faces this company includes; the entry of new businesses into the market.This
is a moderate risk, where a larger capital expenditure firm needs to enter into this niche. This
will be a significant blow. However, they have an upper hand advantage of the cost and
performance advantage as they enjoy the economies of scale. Also, they can supply their
products through their developed chain of supply. In the case of a new firm entry, the
customers can switch to those products as there is no cost of switching from the
product(Dobbs, 2014).Also, the risk of entry of a new firm has been moderate since the
capital required for manufacturing an identical products offered by Brunswick is high.
Furthermore, there are licensing issues which need to be acquired before starting the
operation.
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The Bargaining Power of Customers is extremely high. When the commodity
becomes so expensive, the customers are ready to switch to the readily available more
affordable product. This sensitivity of the price possesses high risk to this company. Thus, to
win the hearts of their customers, Brunswick corporate needs to provide unique commodities
at relatively affordable prices. That is to say; they need to be much more innovative when
manufacturing their goods. In other words, the company should not settle in providing
standard products as they will not sustain the customer’s individual needs (Venkatraman,
n.d.). Furthermore, the company should have a good relationship with their dealers as they
play a vital role in the price of the commodities. This is mainly because the dealership has the
power to control much of the marketing over the market.
There is a higher bargaining power of the suppliers and the likelihood of the vendor
threatening to integrate into the company. This is simply because the enterprise produces
commodities that are less differentiated. The suppliers also have a vital role to play as they
have a higher pricing power. They maintain large margin of income; the company needs to
keep agood relationship with their suppliers. This will increase not only the company’s profit
but also the efficiency. The suppliers will advertise the commodity as Brunswick produce,
and the commodities will find a ready market.
The company’s product is also faced with threats of substitutes (Venkatraman, (n.d.).
Brunswick is a jack of all trades, but a master of none since they are engaged in; boat
building, manufacturing transport vessels, indoor sports kits, fitness equipment, and also
consumer products. Thus, they lack specialization in any niche in the industry. Furthermore,
the company has a much-extended value chain that lacks differentiated products. This causes
a diminishing in their brand equity.
SWOT analysis for the company
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In an attempt of identifying the internal strength, weakness of Brunswick and also an
environmental opportunities and threats, the SWOT analysis was performed. There is some
favorable internal strength that Brunswick Corporation enjoys, for instance,they have an
intellectual property right. This has enabled them to acquire recognition and financial benefits
from their creation. In other words, they have patents, trademarks, and copyright which helps
them to operate with the specified law. This helps the company to nourish their innovation,
which makes them have a competitive advantage. The company also enjoys an extensive
network distribution which has made them penetrate the global market. In fact, the company
has explored different distribution channels which are efficient and cheap, hence reaching a
wider market. Also, these channels have enabled the commodity to reach the market at
affordable prices. In addition to this, the company practices good human resource, which has
allowed them to acquire an excellent reputation (Brunswick n.d.).
Some of the internal threats the company faces are like the downgrading of the credit
rating, which has been of a detrimental effect on the financing options. This has occurred as a
result of analysts feeling that the future prospect of the security has weakened. This is
primarily due to the fundamental operations changes of the company or the future outlook of
the firm. Another internal threat that Brunswick Corporation faces is the financial market
volatility. This can be defined as the dispersion of returns for the company’s security, which
have an impact on the pension assets and consequently affected the liquidity position of
Brunswick.
On the other hand, there are some of the external opportunities that companies can
invest in research and development, which is likely to increase sustainability in the
competitive market. A point often overlooked, the investment in D&R helps in the
development of a new product, and also remain competitive and does the company stays
ahead of the technology. The company also has a great opportunity in increasing or
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expanding the international footprint, which will offer more market since the home market
has declined. The company opts to increase their international marketing which is likely to
offer better buyers of their diverse commodities (Brunswick n.d.). The company also can
adopt some restructuring initiatives that will improve the expenditure in the business. This
will also significantly reduce overhead cost and thus increase the profit margin.
The company Faces some external threats like; they excessively depend on General
Motors in their distribution. Thus, in the case of any disruption in General Motors, chain
distribution, the company is highly likely to suffer from lack of sales (Brunswick, n.d.).
Furthermore, there is the universal deterioration of the economic conditions. This reduces not
only their sales but also the profit margin. Last but not least, if a competitor dealers reduce
their inventory, this can adversely impact the financial results of Brunswick.
Strategy to capitalize strengths and opportunities
Some of the fruitful strategies that the firm can adopt to increase their profit are the
reconstruction initiative, which can lead to a significant increase in saving the cost of
production. For the matter of fact, the company will make significant sales, which will be
adequate to enhance their income. Furthermore, the company can increase the distribution
channels, and therefore boost their sales. In the case of growth in the international footprint,
the company will stop over dependence of General Motors as their primary supply
distribution. Thus, the company will penetrate the global market, and their goods will gain
more recognition.
Strategies to maximize competitiveness and profitability
These are the key mechanism that the company needs to focus its energy and
resources so that they can increase their sales and also dominate the targeted market niche. To
maximize profit a competitiveness, the company opts to strategize the product development,
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its marketing goals, relationship management, pricing, distribution among other crucial
factors(Business Plan Hut.n.d.).In fact, (Business Plan Hut, n.d.) stipulates that there are three
major strategic approaches that a business can adopt to increase competitive advantage and
increase profit. The first devised plan is the low-cost production strategy, which makes the
product not only cheaper, but also at a conceivable price. This plan will give Brunswick a
cost advantage over their rivals. To be sure, there are two options unveils through this
strategy. The company can undercut their competitors and enjoy a significant market share,
or they can just continue selling their goods at the prevailing market price and consequently
enjoy larger profit margin. This can be achieved through a number of ways like; adopting
more efficient equipment, minimize overtime costs, reducing the wastage of raw materials
among other vital techniques.
Secondly, Brunswick should take a differentiation strategy, which will help to satisfy
the customers need when standardized commodity can’t. This involves the producer,
mastering the features and attributes that their targeted market prefers. More importantly, this
makes the customers value the goods that a company produces. Moreover, any firm operates
so that they can gain a competitive advantage over their competitors(Business Plan Hut,
n.d.).Differentiated products are much valued, and the customers are willing to incur an extra
cost for those products. The third strategy that the Brunswick corporation can incorporate to
optimize their profits and dominate their competitors is focus strategy. This involves focusing
on a small segment of the market that existing businesses has not served. In fact, ensures that
the goods and services produced to satisfy the needs, desire, and interest. This theoretically
implies that the company should serve a niche much adequate rather than a large market just
adequately or inadequately. This strategy proves useful when the customers have diverse
needs, wants, characteristic, profitability and desire. In other words, the producer can pay
attention to a specific market segment and satisfy their desires.
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Communication strategies.
Brunswick has an upper hand when it comes to competition. In the matter of fact, this
company has changed their operation game by optimizing their internal strengths to increase
their opportunities and reduce external threats. One of the best strategy that they can adopt to
improve their market penetration, and improve their R&D.Indeed, the company needs to
develop eco-friendly products and recreating their products so that they can gain popularity.
This plan will make Brunswick products to have global recognition as well as a competitive
advantage.
Another communication strategy that the company can use to win the heart of their
business is manufacturing unique indoor recreational tools, which caters all
people’sneeds.This should be promptly done before any other competitor notices the existing
gap. Furthermore, when marketing, they need to adopt clever measures to leverage (Steyn,
2012).Thus, Brunswick should try as much as possible to improve the brand image to
compete at the global level.
Corporate governance mechanisms
Brunswick in most cases, practices ownership concentration one of three corporate
governance. These are the effort used by large shareholders that have a strong incentive of
monitoring the management as they have invested a significant stake in the firm. In fact, they
spend their time, effort and expense so that they can monitor the management closely.
Furthermore, they may secure Boards seats so that they can monitor more efficiently. This is
because the role of the board of director is mainly to control and ratify most of the manager’s
actions so as they can protect the firm’s owner’s interest. Brunswick has adopted some
measures to enhance the effectiveness of the board. First, they have increased the diversity of
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those in the Board, also strengthen the accounting control system as well as the internal
management (Zhu, 2014).
Secondly, the institution has adopted different methods of offering executive
compensation. For instance, the company offers a basic salary as one of the compensation
elements, which is the foundation of the total pay. This has proved important for it has
increased external competitiveness. In this case, the person’s external competitiveness,
internal equity, and general individual performance are considered during the base wage of
the executives (BRUNSWICK CORPORATION – DEF 14A, n.d.).Furthermore, there is an
annual incentive plan, which an approach is used to reward the executive’s accomplishment
based on the set business or an individual’s goals within a given year. Lastly, the company
uses the performance shares that help in creating and sustaining the value for the
shareholders. Some of the metric used in this case are the Cash Flow Return On Investment
(CFROI), and the Relative Total Shareholder Return (TSR).
Leadership effectiveness
One of the most crucial steps that Brunswick Corporation has adopted to ensure that
there is a seamless flow of communication between the board and management is having the
Company’s chief executive to operate as the chairperson of the board.This not only ensures
that the management focus on the execution of the strategy, but also oversees the company’s
strategic direction (BRUNSWICK CORPORATION – DEF 14A, n.d.).Expressively, the
board believes that a combination of these mandates ensures that the operational objectives
are met, and also it ensures that there is an independent oversight the execution of targets.
This kind of leadership is doing currently wonderful.
One recommendation that the Brunswick Corporation needs to make their dream
come to reality is that the leaders need to have clear of mind and have a clear vision. This will
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help them in innovation and also manufacture differentiate products. Indeed, when the visions
are well defined, the institution’s operation tasks are clearer and easier. This makes the
execution process of duties easy, and gratification process as the leaders cross of the job off
the checklist. This will also help the management understand the areas that require more
practice and those that require improvement.
Ethical practices
There are a number of practices carried out by the company so that they can maintain
the ethical working environment. They have a number of programs undertaken in ensuring
that the Directors and all the employees understand the expectations (Brunswick | Genuine
Ingenuity, n.d.). The company works harder day in day out to ensure that their customers are
satisfied, and they earn trust, candor, and honesty, as they take all the consideration and
responsibility of their stakeholders. They make the right responsibility by acting with high
integrity so that they can make the right decision, and upholding the utmost ethical behavior.
One of the programs is the Brunswick Foundation, which was established in 1957 and is a
charitable organization. The foundation oversees the following four major programs. The first
program is the Sons &Daughters Scholarship program, the Dealers Sons & Daughters
Scholarship program, The Dollars for Doers Program, and The Brunswick Foundation Grant
Program ((Brunswick | Genuine Ingenuity, n.d.).
The bottom line of all these programs requires funding which can have detrimental
effects if the company runs short of monetarily. Nonetheless, running these projects collect
money, and the bottom line is that the funds obtained are tax write-offs (Brunswick | Genuine
Ingenuity, n.d.).This implies the financial impact is low when compared to the reward and
impact they bring to the community. In other words, the programs are more beneficial to the
community than they cost the company.
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Conclusion
The bottom line of all businesses is to increase the capital gain as well as maintain a
good relationship with the community. Indeed, Brunswick Corporation has played a
significant role in ensuring that the community benefits from their operation as well as obtain
high-quality products.
References
Brunswick (SWOT Analysis). (n.d.).
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Zhu, H., Wang, P., & Bart, C. (2014). Board Processes, Board Strategic Involvement, and
Organizational Performance in For-profit and Non-profit Organizations.Journal of
Business Ethics, 1-18.
